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Fox says fraud shouldn't be a problem at Ditto. The website's customers aren't searching for an interesting stranger to mimic, he says, but syncing up with people they already know. A sister website, Followable.com, does allow investor matchmaking between strangers. Fox points out that lead traders there can choose to have their results "validated," meaning the website will note that it has confirmed that person's trades. At Ditto, followers pay about $7 per trade, about what you'd pay at bigger online brokerages. Lead traders get a discount depending on how many people follow them, and trade for free if they have 18 or more. People being followed by family and friends often don't charge the monthly fee. But Ditto also attracts professional financial advisers who tie their accounts to their clients', and they sometimes do charge the fee. If you sign up to copycat your cousin and she buys 500 shares of Microsoft, your portfolio will make the same trade. You can set your portfolio so you always buy half the shares your cousin does, or so you always invest the same proportion of your portfolio as your cousin does, or some other formula. You can also set up other preferences, like specifying that you'll follow only when your cousin buys stocks of particular companies. The lead traders are supposed to trade as they normally would for themselves, rather than tailoring their decisions to fit their followers. In some ways, Ditto is simply computerizing an old routine. People have always tried to imitate their successful friends, seeking stock tips at neighborhood barbecues and downtown lunches. And a lot of people, Fox points out, already oversee online brokerage accounts of their family members. Ditto makes it less of a hassle, he says, because they don't have to sign in and out of each person's account. Fox got the idea in December 2008. The financial world was crashing, and he and his brother and business partner, Avi, wanted to get in. They were driven, Fox says, by a desire to help small investors. Fox called a trader friend, Brian Lund, who told him to stay away from the stock market. As they talked, an idea hit Fox. "It would be great," he told Lund, "if I could put jumper cables to your trades and benefit from them." Lund is now an executive vice president at Ditto. The brothers Fox already had experience in both finance and reinvention. Joe was 24, working a dead-end sales job, and Avi 26, already burned out on the corporate rat race, when they decided to open their first brokerage. They started trading from Avi's Chicago apartment, nearly collapsed after arranging the financing for a hotel deal that fell through, then decided to resurrect the business as an online brokerage on a hunch that the Internet would be big. It was 1997 when they opened Web Street Securities. Four years later, they sold it to E-Trade for $50 million in stock and cash. Not everyone is convinced by their new venture. "Uncle Harry has probably only bragged around the dinner table about his big hits," says Erik Gordon, a professor in the business and law schools at the University of Michigan. "He probably hasn't come to dinner and told you about all the stuff that has moved sideways, or the stuff he lost his shirt on." Fox acknowledges that Ditto isn't for everyone. "Not everybody," Fox says, "has an uncle who's very good."
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